World Bank region
Europe & Central Asia
Use this World Bank grouping as macro context, not as a legal or product-coverage boundary.
Country contractor planning
Plan contractor hiring in Andorra
Use sourced market context, choose the right engagement path, and take a clean onboarding and first-payment plan into review before launch.
EUR currency referenceSourced market contextEngagement optionsFirst-cycle checklist
Contractor planning
Andorra
Currency reference: EUR · Euro
Currency
EUR
Engagement path
Local review
Payment setup
Exceptions
Finance close
Country sources
Country basics
Start a careful contractor plan for Andorra
Start with country and currency references, then confirm the local engagement, tax, contract, and payment requirements with the appropriate authorities and providers.
Built for Andorra rollout planning
These facts shape which fields Gruv asks for, which checks can block release, and which exports finance receives.
Income group
High income
Use this World Bank classification as economic context, not as a pricing recommendation.
Internet use
94.4%
ITU via World Bank, 2024. This is connectivity context, not a guarantee of remote-work readiness.
Population
81.94K
World Bank, 2024. This is demographic context, not a freelancer-supply estimate.
Currency reference
EUR (Euro)
Use the ISO currency code in provider, invoice, and finance-planning questions. This does not confirm payout availability.
ISO reference
AD / AND
Use these codes when matching country fields across agreements, providers, and finance systems.
Sources reviewed 2026-07-18. Indicators show their data year in the relevant card and should be used as planning context, not as legal, tax, coverage, or talent-availability conclusions.
Readiness gates
Questions to close before hiring in Andorra
Use this checklist to turn country basics into a reviewable engagement and payment plan.
01
Jurisdiction scope
Identify the authorities and advisors responsible for the Andorra engagement review.
02
Local requirements
Confirm classification, contract, tax, invoice, and registration questions for Andorra with the relevant authorities or qualified advisors.
03
Engagement record
Define the parties, services, deliverables, term, ownership, confidentiality, and change process before work begins in Andorra.
04
Finance close
Decide which contractor, agreement, invoice, approval, payment, fee, and provider references finance needs after each cycle.
Country specifics
How contractor engagement works in Andorra
The local names, documents and figures a payer meets before the first invoice in Andorra.
How contractors trade here
Treat an Andorra-resident contractor as a registered own-account supplier before approving recurring service invoices. The practical file should tie the contract, NRT, CASS status, and commerce or professional authorization to the same person and the same service description. CASS recognizes own-account status for a professional authorization or for a commerce or industry with effective activity in the Registre de Comerç i Indústria, and a new own-account worker must request CASS affiliation within three days from starting activity. Those records do not decide employment status. The labour-law test still asks whether the person works inside the buyer's organization or under its direction for salary.
Sources: CASS, self-employed affiliation, Portal Juridic, Labour Relations Law 31/2018
Trading vehicles
Comerç o indústria per compte propi
Own-account commerce or industry
Use this route when the contractor trades as a natural person through an authorized commerce or industry with effective activity. The government opening process starts with a commercial-name reservation through the Comú and then an opening request for registration of one or more commercial activities with the Registre de Comerç i Indústria. The activity description matters because the form must state clearly what activity will be developed and the concept to be invoiced. Match that description to the service contract and invoice.
Sources: CASS, self-employed affiliation, Govern d'Andorra, commerce opening
Professió titulada per compte propi
Own-account titled profession
Use this route when the service is a titled or regulated liberal profession. CASS treats the holder of an authorization to exercise a titled profession on an own-account basis as self-employed when the holder must be part of the Register of Entrepreneurs and Professionals in the tax census. The buyer should ask for the professional authorization, NRT, and CASS affiliation evidence, then confirm that the contract work is within the authorized professional scope. A titled profession exercised exclusively as an employee is not an own-account activity under the CASS rule, so this form cannot rescue an employee-style working pattern.
Sources: CASS, self-employed affiliation
Where the line to employment sits
Direcció dins l'organització de l'empresari
Direction inside the employer's organization
Andorra's Labour Relations Law applies to every labour relationship developed in the country. A person is an employee when the person provides a service or work for an employer, inside the employer's organization or under its direction, for salary. The employer definition includes the party that receives, directs and remunerates the work and also any natural or legal person with employees. A foreign buyer without a local entity therefore still has a status question when the resident works from Andorra. Article 70 identifies internal rules, orders and instructions as exercises of employer direction.
Applied by: Articles 10, 11 and 70 of the Labour Relations Law 31/2018 define the employee, employer and direction concepts.
What it weighs
- Whether the person provides the work inside the buyer's organization
- Whether the buyer gives employee-style orders or instructions
- Whether the pay is salary-like or tied to an independent service invoice
- Whether the buyer receives and directs the product of the work as an employer would
- Whether the contractor retains control over method and timing of delivery
If the line is crossed
If the relationship is employment in substance, the invoice file is the wrong compliance model. The buyer has to assess salary, written-contract, working-time, immigration, occupational-safety and CASS exposure for the period managed as employment. Serious infringements include no written employment contract, late salary, work-time breaches and irregular CASS contributions. IRPF also changes sides: Article 50 reaches a nonresident payer operating in Andorra with or without a permanent establishment when it pays employment income. Suspend contractor processing and map the employer registration, withholding and correction steps once direction and salary facts exist.
Sources: Portal Juridic, Labour Relations Law 31/2018, Portal Juridic, consolidated Personal Income Tax Law 5/2014
Tax documents that change hands
Factura completa
Complete invoice
This is the transaction tax document the contractor issues and the foreign customer receives. It identifies both parties, dates the operation, describes the service, records the tax treatment and states the total. IGI law requires entrepreneurs and professionals to issue and deliver invoices for their operations. Hold the complete invoice with the matching contract, service-period record and acceptance evidence. That file supports payment and tax review.
Issued by: The Andorra-resident contractor issues and delivers it to the foreign business customer.
Timing: Issue and deliver it for the billed operation before the customer approves payment.
Sources: Portal Juridic, IGI Law 11/2012, Govern d'Andorra, invoice requirements
Invoicing and registration
For ordinary services supplied by an Andorra-resident contractor to a foreign business with no Andorran establishment, start with IGI Article 43. B2B services are realized in Andorra under the general rule when the business recipient has its business seat, permanent establishment, domicile or habitual residence in Andorra and the service is for that place. That condition is missing in the fixed scenario, so the usual invoice should be no Andorran IGI. The invoice still needs the legal precept supporting non-taxation. Screen first for Article 44 exceptions involving Andorran real estate, passenger transport, event access, or restaurant and catering performed there.
Sources: Portal Juridic, IGI Law 11/2012, Govern d'Andorra, invoice requirements
Registration numbers
Registre de Comerç i Indústria
Commerce and Industry Register
A commerce or industry contractor uses this register for the business activity being invoiced. The government opening process asks for the commerce opening and the registration of one or more commercial activities. Activity wording must be detailed, distinct and tied to the concept to be invoiced. If the contractor changes, expands or stops an activity, the contractor must use the commerce modification or deregistration process. Collect the updated record before paying invoices for the changed activity.
Who needs it: Natural-person contractors trading through a commerce or industry.
Sources: Govern d'Andorra, commerce opening
Afiliació CASS per compte propi
CASS own-account affiliation
A contractor who starts an own-account activity and is not already affiliated in that collective must request CASS affiliation. The deadline is the first three days from the start of the activity, and CASS can affiliate the contractor ex officio if it learns of noncompliance. This is a contractor-side social-security file, and the buyer should collect proof because the payment relationship is being run through invoices outside payroll.
Who needs it: Own-account contractors starting or carrying on the Andorran activity.
Sources: CASS, self-employed affiliation
Obligacions formals IGI i NRT
IGI formal obligations and tax number
An IGI obligated taxpayer must file activity start, modification and end declarations, request the NRT, issue and deliver invoices, keep issued and received invoice books, provide periodic information and file returns where required. For the fixed foreign-B2B service, these obligations do not mean Andorran IGI is charged on every invoice. They mean the contractor's tax status and records must be internally consistent, while the Article 43 place-of-supply result is checked transaction by transaction.
Who needs it: Entrepreneurs, professionals and other IGI obligated taxpayers.
Sources: Portal Juridic, IGI Law 11/2012
Published figures
IGI entrepreneur or professional threshold
€40,000 of annual deliveries of goods and services
A person at or below the €40,000 annual amount is not treated as an entrepreneur or professional for IGI unless the person expressly opts in. For a services contractor, this is an IGI status check. It does not decide whether the service is localized in Andorra under Article 43, which must still be applied to the transaction. If the contractor opts into entrepreneur or professional status for IGI, the choice must be maintained for at least three years.
Sources: Portal Juridic, IGI Law 11/2012
Simplified IGI regime
€100,000 annual deliveries of goods and services
The simplified regime is voluntary for entrepreneurs or professionals at or below the €100,000 annual amount. An existing contractor applies to the finance ministry before the end of the preceding year. A new entrepreneur applies during the month after activity starts. Once selected, the regime must be maintained for at least three years. This is contractor-side IGI regime information for onboarding and reconciliation. Record the contractor's election and obtain updated tax information if it changes.
Sources: Portal Juridic, IGI Law 11/2012
What an invoice has to show
Operation date when IGI meritació (accrual) falls in a different filing period
Show the service operation date when its IGI meritació belongs to a filing period different from the period of the invoice issue date. This Andorran exception matters when service delivery and billing cross IGI periods. The same complete invoice must also carry its issue date, number and series where applicable. Match the operation date to the service-period and acceptance records, then ask for correction when the conditional date is missing or inconsistent.
Full names, addresses, NRT or foreign tax identification for both parties
A complete invoice must identify issuer and recipient by full name or legal name, address, and NRT or foreign tax identification number. For a foreign buyer, the recipient identifier will usually be the tax identifier assigned by the buyer's country instead of an Andorran NRT. The payer check is identity matching: the contract counterparty, registration evidence, NRT, CASS file and invoice issuer should all point to the same Andorra-resident supplier.
Description, tax base, rate, tax amount, total and legal precept for no IGI
The invoice must describe the operation and show the tax base, applied rate, tax amount and total. If the operation does not accrue IGI, it must indicate the legal precept supporting non-taxation. This is the main Andorra-specific invoice check for the fixed foreign-B2B service. A blank IGI line without the supporting precept leaves the buyer unable to verify why tax was omitted.
Electronic transmission only with recipient consent and authenticity controls
IGI law allows invoices to be transmitted electronically when the recipient has consented and the transmission method guarantees origin authenticity and content integrity. The contractor should send an invoice format the buyer can retain, audit and reconcile to the registration file. Document the buyer's consent, preserve the received file without content changes, and make sure the retained copy can be tied to the service, issuer and approval record.
Sources: Portal Juridic, IGI Law 11/2012
Currency and timing
An Andorra-resident contractor issues and delivers the service invoice and, while the fee remains economic-activity income, makes the September IRPF instalment. Article 50(3) reaches a nonresident payer only when it operates in Andorra, with or without a permanent establishment, and pays employment income. The fixed buyer's lack of an Andorran entity or permanent establishment does not close that branch because the statute expressly includes operation without one. Approve the invoice without an IRPF deduction only after confirming that the fee is economic-activity income and the buyer falls outside Article 50(3). Set a calendar due date in the contract. A foreign business transaction with an Andorran-domiciled party enters Law 22/2013 when it expressly submits to Andorran law. Inside that scope, the general clock is 60 days and an agreed extension stops at 90 days.
Sources: Portal Juridic, IGI Law 11/2012, Portal Juridic, consolidated Personal Income Tax Law 5/2014, Portal Juridic, Law 22/2013 on late payment
When invoices are settled
Use Andorra's statutory late-payment clock only when the transaction is within its scope or the parties expressly submit the foreign transaction to Andorran law. Within that scope, payment falls due for late-payment purposes after 60 calendar days from invoice receipt, service performance, or acceptance or verification, depending on the facts. The parties may shorten the window and may extend it only up to 90 days. Once the debtor misses the deadline and the creditor has complied, default is automatic without notice, interest equals double the legal interest, and reasonable collection costs may be claimed.
The currency on the invoice
An Andorran contractor can state consideration in euro or another currency; IGI law expressly supplies a conversion rule for consideration fixed outside euro. The euro is Andorra's official currency and euro notes and coins have legal-tender status. State the invoice currency, settlement currency, conversion date and allocation of conversion costs in the contract. If the operation is IGI-taxable, its tax base uses the customs exchange rate in force when the tax accrues. Preserve the rate and conversion date with the tax record.
Sources: EUR-Lex, EU-Andorra Monetary Agreement, Portal Juridic, IGI Law 11/2012
Common mistakes
Accepting an activity record that does not match the service
The commerce opening process requires a clear description of the activity that will actually be developed and the concept to be invoiced. If the application wording is unclear, confusing or erroneous, the register can provisionally reject the request. If the buyer accepts an invoice for a service that does not match the commerce record, the onboarding file stops supporting the selected supplier route. Ask for an amended commerce record that fits the contracted service before payment approval.
Sources: Govern d'Andorra, commerce opening
Treating a no-IGI invoice as complete without the legal precept
For the ordinary foreign-B2B service, the expected IGI result usually comes from Article 43 because the business recipient has no Andorran seat or permanent establishment receiving the service. The invoice still must indicate the legal precept supporting non-taxation when IGI does not accrue. If that precept is missing, ask the contractor to correct the invoice. Do not infer the place-of-supply answer from a blank tax line or from the buyer's foreign address alone.
Sources: Portal Juridic, IGI Law 11/2012, Govern d'Andorra, invoice requirements
Putting a long payment term in an Andorran-law contract
Where Law 22/2013 governs, the default late-payment clock is built around 60 calendar days, and any extension by agreement is capped at 90 days. Clauses above that cap, waivers of collection indemnity and late-interest terms below the statutory rule are null as abusive. For a cross-border contract, first confirm whether Andorran law governs or is expressly chosen. If it does, write the due date, acceptance process and interest clause inside the statutory limits.
Country detail reviewed 2026-08-31. Confirm current figures and filing dates with the authorities cited above and a qualified local advisor before you rely on them.
From research to rollout
Build a first cycle your team can review and run
Country context narrows the questions. A good launch plan then names the engagement owner, local review path, payment setup, exception process, and finance handoff.
Choose the engagement path
Compare a direct contractor agreement, a managed contractor workflow, and a local entity or employment route for the real working arrangement in Andorra.
Build the operating record
Keep role scope, written terms, requested onboarding documents, invoices, approvals, changes, and payment references connected from the start.
Plan payment and close
Ask the selected provider to confirm EUR availability, recipient requirements, fees, timing, exception handling, and the export finance will reconcile.
First-cycle checklist
- 01Write the role as it will actually operate in Andorra, including deliverables, decision rights, work pattern, and change triggers.
- 02Use Andorra authorities and qualified advisors to review classification, contract, tax, invoice, registration, and data questions.
- 03Choose the engagement owner and document which party handles onboarding, support, approvals, changes, and offboarding.
- 04Confirm the payment provider's current EUR setup with one normal payment and one realistic exception.
- 05Close the first cycle by matching the agreement, invoice, approval, payment, fee, provider reference, and accounting entry.
Frequently Asked Questions
What should we decide before hiring a contractor in Andorra?+
Define the real role, deliverables, work pattern, engagement owner, and expected term. Then have the classification, agreement, tax, invoice, and registration questions reviewed for Andorra before work begins.
Which engagement model should we use in Andorra?+
Compare a direct contractor agreement, a managed contractor or Agent of Record workflow, and a local entity or employment route. The right choice depends on the actual working relationship, risk ownership, and operating support you need.
Can we pay contractors in EUR?+
EUR is the currency reference shown for Andorra. Confirm current currency availability, payment methods, recipient requirements, fees, timing, and exception handling with the provider selected for your program.
What belongs in the onboarding record?+
Start with identity and contact data, the signed agreement, role scope, invoice and payment details, approvals, and change history. Add only the local documents identified by the relevant authorities, advisors, and payment provider.
How should finance prepare for the first cycle?+
Agree the contractor, agreement, invoice, approval, payment, fee, and provider identifiers that must reconcile. Run one normal payment and one exception before scaling the workflow.
Other guides in this region
Every guide follows the same structure. Line up engagement options, onboarding records, and first-cycle payment questions across the markets you are weighing against Andorra.
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